Want your child to be money-savvy like Warren Buffet? These tips will help your kid learn how to save and manage money.
The other day my 3-year-old son said to me, "Just go to the bank and they'll give you money," after I told him we couldn't buy a toy he wanted. I realized it was time to explain to him where money comes from. After all, "it's up to parents to teach their kids smart financial habits," says Jayne Pearl, coauthor of Kids, Wealth, and Consequences. Not sure where to start? Here, Pearl shares the most important money lessons for young children, and how you can help your child ace them. Money Lessons: Money Doesn't grow on trees When kids see bills pop out of the ATM, they don't realize that money is a finite resource. Explain that you work to make money, and the bank is just a place that keeps it safe (try to banish your cynicism about the recent economic crisis!). Money Lessons: Work with your budget The best way to teach kids to start managing money is to give them some. If they blow their allowance on a new Star Wars figure and don't have enough left for a DVD they really want, that's actually a good thing: "They learn firsthand the consequence of overspending," says Pearl. Money Lessons: Good things come to those who wait Teaching kids delayed gratification will help combat the "buy now, pay later" mentality that could mire them in credit card debt later on. So, as much as you can, reinforce the idea that waiting pays off. For instance, make a homemade pizza together with all the ingredients your child loves; then microwave a store-bought frozen one. The homemade pie takes longer, but it tastes way better. Money Lessons: Don't Spend it as soon as you get it Curbing impulse buying goes hand in hand with teaching delayed gratification. Show by example. Before you go shopping, create a budget. Outline what you're going to buy, what stores you're going to, and the price range for each item. Then compare prices online and clip coupons together (consider letting your child keep the savings so she sees that bargain-hunting pays). She'll learn that planning purchases before you buy is the routine. Money Lessons: Saving is Cool Your daughter wants a new doll that she doesn't have enough money for? Tell her to save up! Once has enough, take her shopping and let her pay the cashier herself. She'll never forget how good it feels to work toward a goal and be rewarded in the end. Financial education for kids is really an important factor, try to teach them about money management so they have not to face any difficulties in the future.
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Parents and teachers spend a great deal of time teaching kids about all the different aspects of money and personal finance. Unfortunately this information does not always stick with children and those that don't grasp the concept of personal finances can encounter money related issues later in life. When it comes to teaching finance in a way that kids will understand, it is important that regular math is included in the lessons. Knowing basic math skills will help children greatly with managing money and by focusing a bit more on math as opposed to financial facts, you can teach children financial literacy early on.
Where to Start Before touching on finance related topics, kids should have a firm grasp of basic math skills and should be comfortable with numbers. While many parents and teachers talk to children about spending and earning money, saving, and other general topics, there is not usually much focus on tougher subjects such as debt and family income. Research has shown that sensitive topics such as income and debt should be used, not to cause children to worry or become anxious, but to teach them about money management, debt, accounting, and credit. Gradually Introduce New Financial Literacy Topics One mistake that is often made is trying to teach kids everything there is to know about finances at once. Teaching kids about money may includes different topics and it is important to introduce these topics to kids slowly so that they fully understand each one before moving on. Cramming all the financial information they will ever need into one lesson will overwhelm kids and many times they will not remember much of what was discussed. Understanding how money works is an essential life skill, and knowing how to make your money work for you is just as important. So when do you learn these crucial life skills?
Unfortunately, for a lot of folks, these lessons come later than they should, and often as the result of something going terribly wrong. Not enough people make financial education a priority for children, which results in young adults entering a surprisingly complex financial world without the tools necessary to survive and thrive. Even if your children are very young, remember that the sooner you start teaching kids about money and personal finance skills, the more apt they’ll be at applying those skills when the time comes. Check your attitudeOne of the most difficult issues parents have to face is step one – examining your own attitudes about money. This is extremely important because your children learn more from what they see you do than from what you tell them. You can preach to your kids every day that “A penny saved is a penny earned,” or that “A fool and his money are soon parted,” but it won’t do any good if they see that you waste your own money consistently. Be an open bookIt is very important to communicate openly with young kids about money, in simple terms that they can comprehend. Too often, young adults have to learn about credit and debt the hard way: by fending for themselves. It’s better that they learn about personal finances under the guidance and tutelage of someone who’s already been there – their parents. Involve children in family financial planningWhile a young child won’t necessarily understand or appreciate the finer details of budgeting and investing, it can be very helpful to keep them informed of the broad strokes of your family’s financial plan. If you can help them understand that money isn’t limitless and that careful planning is needed for all major (and many minor) spending decisions, that can go a long way towards positively shaping their understanding of personal finance. Give children a chance to be in controlIf you give your child an allowance, let them be in charge of spending it. This is a great way to teach the relationship between their actions and the positive or negative consequences that follow. The key, of course, is to talk about their choices and help them understand why money spent today isn’t available tomorrow. You can also open a savings account in their name and let them make deposits, so they can see the value in building savings. Provide extra income opportunitiesAllowance is nice, but it’s helpful to show children that money is something you earn, not something you are entitled to. Considering offering children opportunities to earn money, rather than just handing it out. This is also a great way to show them the value of hard work and hand off a few of the less unenjoyable household chores. Take children shopping with youYou can use routine shopping trips as an opportunity to give children a sense of scale when it comes to money, showing them that some things are more expensive than other things. You can also explain to them why you buy the things you do. By showing them the details you take into consideration, you’ll be teaching them how to be a more mindful consumer. Teaching children fiscal responsibility doesn’t have to be scary or confusing. It’s easy with these 5 tips regarding Money Mastery for Kids: Five Ways to Make Financial Literacy FUN! As parents, we work hard to raise well-adjusted, kind, intelligent humans who will go forth and become productive and responsible members of society. At home, we do our best to teach them manners, proper hygiene (which for some reason they seem to temporarily forget around age 12), good nutrition and sleep habits, and so much more. At school, they learn history, math, English, and other fundamental skills.
However, there is one critical component where many schools (and parents) are still falling short – financial literacy. In the first quarter of 2019, US student loan debt rose to $1.49 trillion with the average borrower carrying a balance of $31,7121. Meanwhile, nearly 30% of US households have no savings set aside for emergencies and couldn’t handle a sudden immediate need, such as a major car repair2. While some schools offer personal finance or consumer math as a class option, these are typically electives, or only offered for one semester. Hardly long enough to make a lasting impact. Teaching Kids About Money Management I don’t know about you, but I didn’t receive much of a financial education from my parents–maybe because we never had a lot of extra money. Both of my parents worked very hard just to get by. There was no talk of investing or compound interest, and those subjects weren’t taught in my school. In fact, I learned about compound interest the hard way, as I’m sure many others did- in college when I applied for a credit card at a table on the quad just so I could get the free hat! I quickly maxed out that card and suffered quite a shock when the bill arrived a few weeks later. Money Mastery For Kids: Five Ways To Make Financial Literacy FUN Teaching children fiscal responsibility doesn’t have to be scary or confusing. It’s easy with these 5 tips regarding Money Mastery for Kids: Five Ways to Make Financial Literacy FUN! How Do I Teach Little Kids About Money Mastery? As parents, we work hard to raise well-adjusted, kind, intelligent humans who will go forth and become productive and responsible members of society. At home, we do our best to teach them manners, proper hygiene (which for some reason they seem to temporarily forget around age 12), good nutrition and sleep habits, and so much more. At school, they learn history, math, English, and other fundamental skills. However, there is one critical component where many schools (and parents) are still falling short – financial literacy. In the first quarter of 2019, US student loan debt rose to $1.49 trillion with the average borrower carrying a balance of $31,7121. Meanwhile, nearly 30% of US households have no savings set aside for emergencies and couldn’t handle a sudden immediate need, such as a major car repair. While some schools offer personal finance or consumer math as a class option, these are typically electives, or only offered for one semester. Hardly long enough to make a lasting impact. Teaching Kids About Money Management I don’t know about you, but I didn’t receive much of a financial education from my parents–maybe because we never had a lot of extra money. Both of my parents worked very hard just to get by. There was no talk of investing or compound interest, and those subjects weren’t taught in my school. In fact, I learned about compound interest the hard way, as I’m sure many others did- in college when I applied for a credit card at a table on the quad just so I could get the free hat! I quickly maxed out that card and suffered quite a shock when the bill arrived a few weeks later. Money Mastery For Kids: Five Ways To Make Financial Literacy FUN Here are five ways to start teaching kids about money, how it works, and how to make it FUN. These simple concepts are easily understood even by very young children ( I started my daughter when she was four) and only take a few hours per month to implement. Spending just a little time at home developing positive money habits will pay dividends for years to come (see what I just did there?) Money Mastery for Kids: Fun Tips and Tricks 1.) Counting change and handling “real” money: Great for ages 4 and up Personally, I don’t carry a lot of change or bills around anymore. In the age of plastic and application-based spending, money can quickly become an abstract concept and lose its “real-ness.” The simple act of counting change (and saving in a good old fashioned piggy bank versus a brick and mortar bank) can help to make money and its value REAL. Additionally, having children make purchases with cash can help bring the true value of their savings into focus quickly and potentially cause them to reconsider some of those purchases. 2.) Helping to plan a family vacation or major purchase: Great for ages 8 and up Helping to budget and plan for an upcoming vacation, activity, or major family purchase is a great way to teach slightly older children about smart ways to save (and spend money), and in what situations to do so. Thanks to the invention of the internet, children can research drive time and the cost of gas, driving sto a destination versus flying, how much to budget for food, excursions, etc. Then, if the kids want to “upgrade” an experience, they may have the opportunity to invest some of their own funds to do so or look for ways to save in other areas to make those extra fun things happen. 3.) Start a kid-friendly business: Great for ages 6 and up Once again, because of this amazing invention called the internet we have the opportunity to teach kids about how money works, and we can go way beyond the lemonade stand. There are hundreds of opportunities to start kid-friendly online businesses (with a little help from parents.) Everything from selling toys they no longer use on eBay and Amazon, to starting a t-shirt or physical products store online, or identifying a problem among their classmates and working to solve it ( the definition of entrepreneurship), to performing simple household tasks for family and neighbors. The opportunities are endless to help teach kid how providing value and service to others dictates the exchange of wealth. Also, it teaches them about startup costs, the cost of supplies, shipping fees, and (ugh) taxes. 4.) Offer incentives: Great for ages 4 and up A few years ago I accidentally discovered a“trick” for teaching my kids about money. I decided to start incentivizing them by offering to pay them interest for what they saved each month. I created a system of fun worksheets, spreadsheets, and coloring sheets to help them (and me) learn about the future impact of their choice to continue saving or go ahead and make a purchase. The results have been pretty phenomenal. My daughter absolutely CRUSHED me last year and is a savings machine, while my son chose to take his savings and purchase an Xbox.The bottom line is that it was their choice and they fully understood the consequences of their actions. 5.) Develop the habit of giving: Great for ages 6 and up While teaching our children that money is a tool that is used in exchange for value given and received, we can also show them that is an instrument to do tremendous good around the world, or even just down the street in your local community. As a family, consider choosing a charity to donate to once per year, or once per quarter, whatever works for you. If you’re looking for local impact, consider volunteering a few hours per month. This will help to teach kids about the currency we possess that is even more valuable than money: our time. Ultimately, children will always learn the most by watching us- their parents! Our attitudes, habits and mindset about money will shape them for the rest of their lives (whether we like it or not.) We have the power to shape the next generation of consumers (and givers). Together, we can break the debt cycle and position our children to experience what it truly means to be financially free. You can help your children to learn different things from the popular children book series and start teaching kids about money. I remember being a teenager and thinking I knew so much. In hindsight, I know I knew pretty much nothing at all, and have since eaten crow and admitted this to my mom.
As my oldest (very rapidly) approaches her teens, my husband and I know that there are a lot of lessons that they need to learn. We know many will come through school and our church. We also know that most of them will come from her father and myself. One of the most important things we need to teach her is about money. Not just how to make it, but how to be wise about how she uses it vs. saving it. We know that this is paramount to her becoming a contributing adult when she gets older. Teaching her about money now, will help set her onto the path of financial independence. While I know this to be true, it is difficult to teach. But then again, aren’t most lessons we have to teach our kids? *SIGH* As she moves into the time in her life where she will make actual money (other than from mom and dad), it is tempting to just spend it as soon as it is earned. As parents, we have to help them learn the tools they need so that they can make smart financial decisions. This starts with knowing how to save. We are watching our daughter as she gets money. It is funny because she doesn’t want to spend it on anything right now. However, we also know that as she gets older and is more into fashion, music, food and all of those other things teens are into, this may become increasingly more difficult. OBSTACLES TO TEACHING TEENS When trying to teach a teen about money, there are often obstacles that we, as parents, hit. We have to find a way to overcome these to make sure that our message gets across. These include:
Since we know that you can’t change the way a teen thinks, as parents, we have to find a way to work around these issues and help our children truly understand the importance of saving money. As yourself this, what does your teen say (or even look like) when you say to them “We need to save for the future!” I know that my daughter gives me a look and says “Why?” She really doesn’t understand why I am saying it. It is not that she doesn’t want to understand, her brain really does not get the concept. With her, we talk about the items she knows she wants to buy. She wanted a new tablet, so she was able to understand saving for that (which she has since purchased). For your teen, it could be the new car, the computer, the phone or even saving for college. Find something that they can focus on right now which may motivate them to want to save money. PRACTICAL IDEAS FOR TEACHING TEENS Now that you have figured out what you are up against, you are ready to jump in and actually teach your kids. Here are some real life ideas to help you do just that. Put them on a budget. Decide how much money your teen will be given each month. Help them budget in money you would normally spend on clothing, entertainment and the other things that they may want. Hand them over the entire amount you would give over the course of a month, but all at once. For instance, if you give them $80 for the month, help them figure out how much they will need each weekend for the movies or dinner out with friends. Make sure they include other expenses they may also need to pay such as new clothes and cell phone (if you include that in the amount you give to them). This helps set them up to learn how to use and follow a budget, so that they learn no other way of handling a paycheck. Pay them for saving. This can be an incentive for your kids. You could agree to pay them a bonus of 5 – 10% for anything they can save. This helps them want to save and to learn how saving money is a way to make them more money. Of course, the rates from the Bank of Mom and Dad may be more generous than what you find in the real world, but at least it helps them learn to save and more importantly, to want to save. Teach them about credit. This is a very important tool all kids need to learn about. It is very important with teens, as they will have bank accounts and debit cards. They need to really understand how this works and how to make sure they do not overspend. Use online tools. You can find free games which help teach your kids about money management. They can learn to manage a business to really understand how the business world operates. As parents, from the moment we have that precious bundle placed into our arms, we take on a huge responsibility. We are charged with taking care of this little human, teaching them right from wrong, educating them, keeping them safe from harm and doing what we can to raise them to be the best people they can be. As our kids get older, the responsibility shifts to a more mature line of parenting. As we prepare our teens for adult life, we begin showing them how to shop, to cook, to drive and get ready for college. One area that is of utmost importance that many parents may not think to teach their teen is about managing their money. Many college freshman are living on their own for the first time and are often inundated with credit card applications. If we do not teach them how to be smart about their money, they can be in a dire financial situation by the time they graduate. If you are not sure how to broach the subject of money with your teen, you should turn to someone who has experience. With the H&R Block Dollars & Sense educational initiative, they are dedicated to increasing the financial literacy of our teens. The program gets educators, parents and high school students together to ensure our teens are given the financial foundation they need to succeed after graduation. Because many of our high school kids are leaving the nest with limited financial skills, it is crucial we teach them before they head off to college. Surprisingly, only five states require at least a one-semester, stand-alone personal finance course before graduation, which completely shocked me! In addition, only a third of parents are even comfortable talking to their kids about money. As a matter of fact, many parents would rather talk to their teens about smoking, drugs or bullying than they would about money. In a recent survey, H&R Block Dollars & Sense found that a whopping 58 percent of teens are worried about being worse off financially than their parents. With today’s college student, more of them are paying for college themselves than ever before and many are taking on record-breaking debt once they graduate. If they are not going to college, many teens will be going to work after they graduate from high school and will move away from home. For many, they will be facing things like rent, grocery, utilities, car payments and insurance and other monthly bills. They have no idea how to manage their bills or even balance a checkbook. H&R Block Dollars & Sense equips teens with the skills, knowledge and confidence to manage their financial futures. The program covers subjects like budgeting, saving, spending, credit cards, student loans and more. Another cool aspect of the program is high school students receive scholarships and tips to help them become more financially fit. High school educators will receive classroom tools and resources to help them in teaching teens about money . And, parents will receive lots of resources and statistics and tips on how to talk to their teens about money management. The program is free to a classroom teacher at an accredited high school or home study program, as it is a teacher-tested, online simulation tool that replicates real-world budgeting and personal finance decision making. The developers of the program believe that by simulating an adult’s financial life, with paying bills, investing in retirement, managing loans and more that students will take a personal interest in this learn-by-doing educational approach allows high school kids to make real-world mistakes without facing real-world consequences
The H&R Block Budget Challenge immerses students in the life of a recent graduate who has been working for six months. Each participant receives a virtual salary and must make smart budgeting decisions with their expenses like rent, utilities, car payments and more. Students will receive bills on a regular basis and must pay them on time, while they maximize their savings via a virtual 401(k) and minimizing penalties like late fees, overdraft fees or other finance charges. H&R Block feels the simulation needs to include realistic surprise scenarios and monetary challenges such as a car accident or lost cell phone, just like we adults face in our every day lives. The participants can earn bonus points for completing quizzes on personal finance topics and H&R Block will award $3 million in classroom grants, college scholarships and cash prizes via the H&R Block Budget Challenge. Winners will be determined on both an individual and classroom basis. At the end, the one student who demonstrates they are the most “real-world ready” will receive a $100,000 college scholarship. The next session begins on February 13, 2015 and will run through April 16, 2015, with sign-ups closing the week prior to the session begins. Teaching about money to students is something we feel passionately about. In the State of Ohio, the legislature has gone back and forth about how to teach budgeting and financial concepts to students. They have left it to the local school districts to incorporate learning standards as they see fit, whether as a stand alone course or more often as part of another course like economics.The results have been hit or miss. As parents, teaching finances can fall to us, and the topics can include:
Let’s look back to our childhoods.Did you have an allowance when you were a kid? Maybe some change or a few dollars if you did your chores? Were you the kid who spent your allowance right away or did you save all your pennies toward some big goal? Some of those habits may have followed you to your adulthood. But now as the parent of a college-bound teenager, you and your teen are making plans and starting to think about the life beyond college. Teens have never paid taxes, insurance, or had to repay a loan. The school of hard knocks is not how you want your child to learn personal finance. Teens need to understand budgeting and how the decisions they make now could have a huge impact on their future quality of life. We have some tools and ideas that can help. When teaching finances, begin with the end in mind.Your future self will thank you. Even before setting foot on a single campus, a family needs to sit down and talk finances. Establishing a budget for college is critical. Following our 3-step process to graduate with less debt and using our College Pre-Approval Worksheet can be your guide to determining how much college you can afford–to include a reasonable student loan amount. This simple one page college-funding worksheet can help you visual how much money you will have available to pay for college. Thinking about what your student’s post-graduation financial picture will look like is also an extremely important part of choosing a college. By looking at the post-graduation picture, you can back into how much college you can afford. Your student will not really have an accurate conception of postgraduate finances without an exercise like this, and we have a simple worksheet you can use. Before you get started, be aware of these key components for the discussion:
Please note our example today is intentionally basic. We always tell families to never rule a school out based on sticker price. It is all about your “NET COST” to attend the college. The out of pocket amount of money families will be expected to pay even at the same college will vary greatly based on their eligibility for both need based and merit based financial aid. That topic is covered in other posts. For this worksheet today, let’s use these figures.The average in-state public college tuition with room and board is around $21,000 per year. Four years will cost approximately $84,000 (assuming the cost does not rise from year to year—like we said, we’re keeping it simple). The parents have committed $50,000 from savings and cash flow to put towards college leaving $34,000 to be paid for by the student. For our example, we will assume that the entire $34,000 is taken out in student loans. Taking all this information, you can begin with our budget worksheet. Remember…this is a family activity. Your student won’t learn anything if you complete this worksheet for them so you and your student both need to be sitting at the table. Let’s calculate the anticipated starting salary for your student, and plug it into the worksheet. Say your student is going to be an accountant with an average starting salary of $47,488. For our purposes, lets use the nice round number of $48,000. We’ll assume they don’t have a spouse or additional income yet. So, their monthly gross salary is $4,000. Your student is probably going “hey, that looks pretty good!” Let’s continue… Needs vs Wants First up, “needs.” The first group of expenses are non-negotiable. They must be paid each month. They include:
Student loan The student loan payment item is the one we will play with to determine how much college you can afford. Changing this figure will affect your bottom line and will give you the base guideline you need when looking for a college. Using our average figures from above, we’ll use the total student loan amount of $34,000. A quick way to estimate a monthly amount is to plan on $100 per $10,000 in loans. This assumes you take the standard 10 year repayment plan. (Remember, the maximum federal loan amount will be $27,000 so some of this amount will be private loans which will have higher interest rates. We’ll keep it simple here.) In this example, your grad will be paying around $340 per month. Now let’s subtract the $340 from $4,000, and we get $3,660…still good. Health insurance Continuing on…health insurance. Estimating an average monthly healthcare cost is tricky. We’ll go with $201 per month for an average 21-year-old student. Retirement savings Trying to figure out how much to save each month for retirement is difficult. Some will recommend 15%. Some say at least up to what your employer will match. If your employer will match up to 6% of your 401k contribution, then plan on 6%. 6% of the annual salary we’re using is $2,880 or $240 per month. You can point out to your student that 6% is just a starting point. As you get raises, increase your contribution by 1% each year. You will be saving 10% plus of your pay by the time you are 30. Again, your future self will thank you! Credit card payments Let’s skip credit card payments and assume your grad does not have any–a nice idea indeed! At this point in the conversation, you can discuss the impact of credit cards, their pluses and minuses, and sound thinking about them. Taxes The next item on the worksheet are taxes. We are estimating 30% of your monthly salary will go to taxes. Let’s deduct annual 401k contributions and health insurance costs from the pre-tax annual salary ($48,000 – $2,880 – 2,412 = $42,708) to give us a better picture of our pre-tax annual income. 30% of this amount is $12,812 or $1,068 per month. After our “need” deductions, we’re at $2,151 per month —darn those taxes. But we’re still looking good! We’ll use this figure as our adjusted monthly income. More fun now…moving on to “wants.” We move now to the second column of the worksheet, the WANTS, which has expenses more within our control because they are based on our choices in life. Your future grad can play with these items. What kind of car do they want to drive? Do they have a dream city they may want to move to? What is the cost of living? How much will housing cost? Each of these items’ costs are based on approximate percentages of your gross salary, but these values can vary widely. Well, that can’t be?!This plan leaves us short by $553 per month?! We want teenagers to learn this lesson. You have to spend less than you earn and live within your means. Now you are forced to make budget cuts. But where? This is something families face each and everyday. Do we stop putting money into the 401(k) plan at work? Live with a roommate and reduce our rent? Extend the student loan payment schedule to 20 years instead of 10 to lower my monthly payment? Take the bus to work? Get rid of cable? These life decisions are the ones your teenagers are going to face one day. One part of the American dream is going to college to better yourself and make a good living. But the ultimate goal and the reason we work so hard is the idea of financial freedom. If we let students start out their lives as indentured servants to their student loans, they will never be able to save additional money for retirement or save for an emergency rainy day fund. How will they ever save for a down payment on a home? Or start a family? Going back to the student loan item.We based this whole exercise on the college choice resulting in $34,000 in student loans. Think about how much more would be left over if we chose a college not as expensive (or on the flip side a college that was MORE expensive–YIKES). If a student could have started with half the amount of student loans, they would have half the amount of monthly payment. Teaching teens about money is critical because it can put the future in terms students can understand like driving a reliable car, living in a nice neighborhood, having a fast high speed internet connection, etc. These things are often the things that they take for granted since they don’t pay for them. Tell them how much you pay for their cell phone and car insurance. They will begin to see the big picture. This exercise is an excellent way for your student to really see what their financial future can look like and how their choice of college can impact that future reality. Carrie Schwab-Pomerantz, 54 years old, didn't have a lot of money growing up. What she did have was a role model in her father, Charles Schwab, who founded the brokerage firm that bears his name in a two-room office in 1971. "My dad was a struggling businessman until I was in my 20s," she says.
As a teenager she worked (baby sitting, a paper route, secretary) and she saved—opening a savings account, moving back home after college to scrape together her first and last month's rent and to buy herself a bed and a dresser. And she is still working, now to impart the good money habits she learned first hand to those not fortunate enough to have role models like "Chuck." It's no secret that financial illiteracy is rampant in the U.S., where less than one-third of the population can correctly answer three simple questions on interest rates, inflation and diversification, according to a study by Anna maria Lusardi of the George Washington University School of Business. But the jury is still out on what, if anything, to do about it. Not surprisingly, Ms. Schwab-Pomerantz is a big believer in learning basic money-management skills at a young age. "It really all starts with us as kids," she says. "That's where we learn the behaviors, attitudes and habits to take care of ourselves." So 10 years ago, shortly after becoming president of the Charles Schwab Foundation, a private, nonprofit organization funded by the Charles Schwab Corp. she refocused the foundation on teen financial literacy, joining with Boys & Girls Clubs of America to educate teens about the basics of personal finance and investing. The result was Money Matters: Make It Count, a personal-finance course designed for club members ages 13 to 18. To date, more than half a million teens have cycled through the program, which has been adopted by well over half of the 2,700 clubs. It typically runs an hour a week for eight to 10 weeks and covers five subject areas: budgeting, saving and investing, planning for college, credit and debt, and entrepreneurship. "Besides my own kids, it's one of my biggest sources of pride," Ms. Schwab-Pomerantz says. Still, through her work on two presidential advisory councils on financial literacy, she's well aware that there's no consensus on what financial literacy means, let alone how to achieve it. So she commissioned a fairly rigorous, yearlong study to evaluate the Money Matters program "to ensure we were making a good investment and were having an impact," she says. The results, just in, are encouraging. Teens who participated in the course showed gains in 50 out of 53 subject areas. For example, at the start of the program, just 47% of participants understood the importance of paying yourself first, or automatically saving 10% of what you earn. By the end, 71% understood. It helps that the teens are by and large eager to learn about money—particularly those from poorer backgrounds."The Money Matters curriculum provides them with the knowledge they want but have nowhere else to get," says Damon Williams, senior vice president and chief educational and youth-development officer for Boys & Girls Clubs. (Only 17 states require high-school students to study personal finance.) It's also designed to be fun, with opportunities for teens to work in teams toward relevant goals, such as creating a budget for the prom, or to earn "club bucks" to bank and spend at club stores."We don't want to be school, part 2," says Mr. Williams. "We want to bring financial principles to life." Guest speakers and adult volunteers play a big role, sharing practical experiences and serving as role models, he adds. Mr. Williams is hopeful that in time the program will improve not only teens' financial knowledge but also their financial behavior. Already there's anecdotal evidence that participants are more likely to open savings accounts and track spending. Meanwhile, Ms. Schwab-Pomerantz has devised a kind of remedial Money Matters course for AARP and written a new book, The Charles Schwab Guide to Finances After 50. "The reason baby boomers are ill-prepared for retirement is that no one taught them about saving, budgeting, using debt wisely and living within their means," she says.But like the Boys & Girls Clubs teens are taught: You're never too young—or too old—to learn. There are variety of popular children book series available and with the help of those books you can teach your kids about money, money management, life skills and life lessons. Many families gather for the Thanksgiving holiday and acknowledge their gratitude for each other and a bountiful meal. This is an opportune time to connect with generations of family members over topics involving financial literacy for kids, planning and budgeting to teach younger generations healthy financial habits.
Who better to impart this financial wisdom than grandparents, who can speak from years of experience. Not to mention, grandparents have an advantage over parents – they can speak more freely with their grandkids, and in turn, the grandkids open up to them more. Many children dismiss advice from their parents, but that same advice can be received differently when delivered by a beloved grandparent. Key financial lessons that can be taught this holiday season include: Understand the Value of a Dollar Engaging grandchildren in giving back by volunteering at a local food bank or another charity that sorts food for the homeless, or serves the needy a Thanksgiving meal, can serve as a bond and drive home a valuable message. Grandkids of all ages would benefit from seeing firsthand people who have experienced financial hardship and are forced to rely on the kindness of strangers. The personal impact from interacting with the less fortunate, along with the accompanying awareness and conversations about financial planning, can spur greater bonds between grandparents and grandchildren. Eliminate Unnecessary Spending Hand-me-down furniture, cars and home goods may all be welcomed by a grandchild. Gifting these items may also be a good starting point for a conversation about financial choices and priorities. If a grandparent lives near a college and has a spare bedroom, offering the grandchild free room and board in exchange for some household and yard chores is a great way to save on college expenses and deepen the relationship. Never Too Early to Invest Teaching moments are possible when a grandparent gifts a stock to a grandchild, along with a discussion of dividend reinvestment and capital gains. Setting up a college savings plan such as a 529 and discussing it with a grandchild can also be a great way to introduce the concepts of saving, compound interest and even income tax planning. Get in the Habit of Following a Budget For grandchildren who have jobs, grandparents could propose a sort of matching program by putting funds into a Roth IRA, college fund or savings for a major goal such as a trip or a car. This is a great time to introduce the concept of separate money “buckets,” for saving, spending, donating and investing. A grandparent can use this opportunity to relate their own story of saving for retirement while budgeting for current cash needs and sending children to college. Teaching financial literacy to kids to is also an important factor, try to teach them about money management so they have not to face any difficulties in the future. The concept of saving money by cutting expenses may not be top of mind for you. When I was a young soldier serving in the United States Army, I thought the only way to save money was by earning more money. However, earning more money is not the answer to helping you save more money. After 12 years of service all I had to show for it financially was over $32,000 of credit card debt – even when my food and clothes were paid for and I was provided a place to live! I ended up with NO SAVINGS and a ton of debt because with every promotion my pay would increase but my spending would increase even more. If I have said this once I’ve said it a million times: what separates those who have savings from those who don’t comes down to the simple formula of spending less money than you make.
I believe a large contributor to people being unsuccessful when it comes to spending less is that they take an all or nothing approach. When they do this, they make such drastic cuts in their spending that after only a short time they become frustrated and give up. I am not saying that making drastic cuts in one or two areas of your spending doesn’t work, but finding many places where you can cut out a little can help keep you on track for a longer time. For example, if you cut out your daily latte, you could save over $150 a month. The same goes for the mid-day energy drink pick-me-up; that afternoon ritual will cost you over $100 a month. If you take an all or nothing approach, you will likely end up with a caffeine withdrawal headache and after a short period of self-denial, you may find yourself back to spending hundreds of dollars each month on those drinks. Instead of purchasing both drinks every day you, what if you decided to alternate one per day? You can save roughly $125 a month and still get to enjoy both of those drinks. In addition to simple changes to your spending habits like this one, below are my two best tips to help you cut your overall expenses: #1. Track your expenses. Grab a notebook and commit to tracking your expenses for the next 30 days. Doing this is as easy as writing down what, where, when and how much you spend every time you spend money. On average, you can expect to save anywhere from $150 to $250 after performing this exercise. So how does that work? Sunlight can make a great disinfectant, and it is only after you know what you are spending your money on that you can choose where to reduce or cut. #2. If you don’t see it, you can’t spend it. Before you pay anyone else, make sure you are paying yourself first. To do so, put money into savings, preferably at a financial institution other than where you have your checking account so it is harder to quickly transfer money from your savings directly to your checking account. Direct deposit and auto-draft are two terrific options to do this each month without any effort on your end. By getting that money out of your checking account, you will have no choice but to spend less because the money won’t be available to spend. Teaching teens about money also an important factor, try to teach them about money management so they have not to face any difficulties in the future. When it comes to the most important life lessons you can teach your kids, being responsible with money ranks pretty high up there. Shopping for groceries. Paying taxes. Buying a house. Almost every aspect of your kid’s adult life will revolve around healthy money habits.
But many Americans don’t have a solid grasp on how to use their money responsibly. Nearly half of Americans don’t have enough cash to cover a $400 emergency, and a third have saved nothing for retirement. Meanwhile, more than 60 percent of young adults under 34 say that thinking about their personal finances makes them anxious. In many cases, these young adults feel anxious about their finances because they never learned about money growing up. Fewer than 20 states require high school students to take personal finance classes, even as studies show that young Americans want to learn about money and wish they had learned to be more financially savvy in school. That’s where you come in. Giving your kids real-world lessons at home on how to manage their finances will go a long way toward helping them stockpile plenty of savings, stay out of debt and maintain healthy credit scores. Read on to learn the critical money lessons you should teach your kids at every age, from their toddler years to their teen years. Start With Yourself: Be a Good Example Smoking. Drugs. Bullying. All of these are topics that parents say they would rather discuss with their kids than the family’s finances. Brush Up on Basic Financial Concepts Pop quiz! If you take out a loan for $1,000 with a 20 percent interest rate, how much will you owe per year in interest? The answer is $200. Did you know that? If not, you’re like almost two-thirds of Americans who have trouble calculating interest rates. Take some time to brush up on basic financial concepts. Make sure you understand these topics inside and out so that you can answer your kids’ questions and provide the most well-rounded lessons possible. Get Out of Debt Every good lesson in using money responsibly starts with reducing or eliminating debt. More than 40 percent of American households have credit card debt, and the average debt among those households is more than $5,000. Since you will be teaching your kids about avoiding debt, you should set a good example and make sure you have paid down your debt first. Kids are more likely to practice healthy borrowing if they see their parents also doing so. Set Family Financial Goals In some families, one spouse takes the lead when it comes to handling the finances. Maybe your partner handles the bills, the family’s bank accounts, and the tax records, while you manage other aspects of the household. If this is the case for your family, it’s still important for you and your spouse to sit down, go through the family’s finances and get on the same page. This way, you can better understand your family’s financial goals and communicate them with your kids. It’s also helpful to write down your family’s financial goals and display them in a prominent place in the home. For example, if your family wants to go on vacation later in the year, you could post that goal on the refrigerator to remind everyone why the family is saving. Protect Your Kids Another important component of putting your kids on the best financial track possible is thinking about what would happen if you could no longer take care of them. Even though most Americans have life insurance, a good chunk do not have enough coverage. About half of Americans have $100,000 or less in coverage. It’s recommended that you have coverage equal to at least 10 times your salary. With kids, that multiplier should typically be even higher. Also, make sure you have a will to ensure that your assets are properly divided and that your kids are cared for should something happen to you. Younger Than 3 At this age, your kids likely just learned how to throw a ball overhand or to scribble freely on paper. They have no idea what money is or how it works — but that doesn’t mean you can’t introduce them to some basic money concepts. Allow them to play with coins. Play store to introduce them to the concept of a marketplace. Even allow them to watch you pay bills. This helps them understand that money has a value and that items vary in cost. Coin Identification Game Show your toddlers different types of coins. Allow them to trace the outlines of the coins onto a piece of paper. As you color in the shapes that you traced, help them to match the coins to the drawings and repeat the coins’ names. Coins are more fun for toddlers to play with than paper money, but you can also draw dollar bills and color those in to include in your toddlers’ homemade “wallets.” The Play Store Using the pretend money that you created from the coin identification game, gather a bunch of household items and allow your toddler to exchange the money for the items. Kids already love playing store for the fun of it, but take this opportunity to show them that different items require different types of pretend money. For a twist on the traditional game, decorate price tags and attach them to the items. Toy Calculator and Checkbook Toddlers are always watching you, so why not use that to help them learn about money? When you’re paying bills with your checkbook and calculator, let them know that you’re buying things just like they do when they play store. For even more fun for your toddlers, give them their own “checkbook” and calculator to play with while they watch you. Ages 3 to 5 By kindergarten and pre-kindergaren, your kids have already seen you give something green to the pizza delivery driver or put down a piece of plastic on the table at the end of your dinner at a restaurant. It’s your job to answer their questions and explain to them that they need money to buy things. As they reach school age, you can even allow them to manage a little bit of money on their own by way of allowances. It’s up to you whether the allowance should be earned or given, but the important thing here is to teach your kids to save and to help them understand that they may need to wait before they can buy something. Saving, Spending, and Sharing Jars Gather three clear jars and ask your kids to decorate labels with “saving,” “spending,” and “sharing” for the jars. Piggy banks are great, but you can’t see what you’re putting in them, and you want your kids to be able to see the progress they’re making! Explain that everything costs money. The money in the “spending” jar can be used today to buy anything your kids want within reason. If they want something that is more expensive, they will have to wait until their “saving” jar has enough money in it. You can also encourage your children to put a couple of coins or a dollar bill or two in the “sharing” jar, and help them think of charities for the money. Needs vs. Wants Shopping Let’s say your kids want a $10 stuffed animal. Help them count out $10 from their jars. Have them take the $10 to the store and hand the coins and bills to the cashier. Allow them to see how much money is left in the jars, and explain to them that if they spend money this time, they’ll have to wait a little bit before they can buy something again. If they don’t have enough money in the jars, help them understand how much they have and how long it will take to save enough for the stuffed animal given their current savings rate. You must take some live examples for teaching kids about money, it will let them learn very easily and quickly. It can happen so quickly. The office has a round of layoffs, or an illness strikes out of nowhere, and suddenly even the most fiscally responsible family can find itself facing dramatic lifestyle changes. Financial reversals create stress for everyone in a family, especially if they come with changes such as relocating for a new job, canceling vacation plans or having a stay-at-home parent return to work. Accordingly, experts recommend that parents who find themselves in this situation talk to their kids about any changes on the horizon. After all, says Kate Wechsler, a clinical social worker who serves as a psychological consultant at schools in Brooklyn, NY, you don’t want to panic your children, but “it doesn’t serve anybody if the parents don’t tell their kids the truth and keep on going like everything's the same, and then suddenly the bottom falls out.” Here are some strategies to make a tough conversation go smoothly. Plan the Conversation First, set the time and place for the conversation. Whatever the news, it shouldn’t be delivered as a surprise announcement over dinner, says Wechsler. “The unknown is a formula for anxiety,” says Wechsler. And while you may be working on resolving the uncertainty for your kids, she says, “parents don’t have all the information instantly.” Wechsler recommends that before having the chat with your offspring, you and your partner begin with a comprehensive evaluation of your fiscal situation and what it may mean for your lifestyle in the near and long term. Yes, it’s stressful to comb through your finances and think about cutting back on your spending. “But it's the parents' job to discuss the situation first and actually do what they can to manage their stress, so that they share less of their anxiety with the kids,” says Wechsler. “That's very important.” For both single and divorced parents, having sounding boards are no less important, so seek out trusted loved ones with whom you can discuss your situation. And although it may be challenging to connect with an ex, divorcees should share their financial news with their former spouse, as appropriate, to make their kids the priority. Your Goals: Information and Comfort The aim of the conversation is to share information with your kids and explain the next steps in your plan. Keep your tone positive. “If you communicate anxiety for your kids, you can’t take that moment back,” says Wechsler. You wouldn’t say the same things to a four-year-old as you would to a 16-year-old, of course, but regardless of your kids’ ages the idea is to provide comfort. Let your kids know that there may be changes afoot, but balance that reality with a reassuring message of togetherness, love and perseverance. Having the Conversation Wechsler advises parents not to make a huge deal out of sharing the news—no drum rolls and fanfare required. Simply be sure you have their attention, she says. Next, stick to your script. Discuss, briefly, why your family’s finances are in flux. You want to make everyone aware that there may be changes, such as a new budget or spending cutbacks. But then stress that your number one goal is to take care of the family. “I counsel parents that it’s good to create an atmosphere in the home where children feel they can ask any questions,” says Wechsler. “That being said, if a child asks a question that's difficult to answer—‘Oh my god, does that mean I have to leave school or I can never go back to camp?’—you can say, ‘Mom and Dad are figuring it out. We don’t have all the answers yet, but we’re working on it. Whatever happens, the main thing is we will all be together and we’re going to get through this and do what is best for our family.’” The information could be a lot for kids to process emotionally, she says. Some may simply retreat, while others may panic and demand answers. Help ease the tension by transitioning after the conversation into a normal family ritual—dessert, playing a game or watching a movie together. And go ahead and give yourself a pat on the back for opening a pathway for communication during a difficult time. While there is hard work ahead, you’ve taken a positive and useful first step. . Teaching kids about money is also an important factor, try to teach them about money management so they have not to face any difficulties in the future. BlackDog743
Teaching kids about money can be fun — you can take a day-to-day activity and make it a learning moment, or turn a complex topic into a game. Your child has something to learn money-wise at every point in their life, from toddler to high schooler. Here are some easy and fun ways to teach your kids about money. 1. Use a piggy bank Start easy and traditional with a piggy bank. Plus, let’s admit it — breaking open the bank when it’s full to see how much you saved is the best part for any kid. 2. Use a clear jar If piggy banks aren’t your thing, try a clear jar. It’s more visual — that way, your kids can see their money pile up. 3. Play money-themed board games Classic games, like Monopoly or Life, teach your child more than just board game etiquette. They also teach youngsters important life skills, like purchasing real estate or saving up for retirement. 4. Play money games online Online games are an easy way for kids to grasp basic money concepts. Check out Visa’s money games, which are catered to children of different age groups. 5. Watch money videos There are a number of popular YouTube videos on teaching kids about money — not only are they fun and interactive, many of them are less than 10 minutes. Put one on during a short car ride or at the doctor’s office to help them stay entertained while learning. 6. Play store Purchasing a plastic toy cash register can be a useful tool in teaching young children the basics of adding up and managing prices. 7. Teach money using what your kids love Talk about money in relation to things your child enjoys. If they read, explain the price of books. If they play sports, explain the cost of sports equipment. Show how those skills can be applied to your career or money-saving habits. 8. Host a saving contest Nothing like friendly competition to get your child to practice saving — you can even save a little along the way. 9. Make a literal pie chart Make a budget pie chart out of a real pie by cutting it up into pieces for each budget category. This yummy round dessert is also a perfect way to teach kids the art of budgeting. 10. Go to your local yard sale Yard sales are a great way to snag a bargain and enjoy some family fun time. Show your child the fun (and fiscal responsibility) of purchasing items second-hand, and even have them bargain for a better price. 11. Read money books together Just like you’re reading this to learn new money management methods, reading the basics with your child can be fun. Choose something small and easily digestible to read with your child and then talk about the money lesson with them afterwards. Not sure where to start? Policygenius has a free weekly newsletter where you get one easy money thing to do each week sent right to your inbox. 12. Show the value of time Saving is an essential part of healthy finances but so is charitable giving. Help your child choose a charity they can give to or volunteer at that ties with something they care about, like a local animal shelter for kids who love pets. 13. Teach them how to give to those less fortunate Finding time in your family’s busy schedule to volunteer can be a challenge, but you can still teach charitable giving by donating old toys and clothes. If possible, take them to give their donation in person instead of mailing it so they can feel the reward of giving back. 14. Play house Look through online listings of homes and have your child pick out their favorite properties. Then use rough math to figure out how much money you’d have to pay each month to live there (Zillow and other real estate sites will do this automatically). If you have older kids, check out the real estate landscape where their college could be and compare prices. 15. Plan a vacation Going on a family vacation? Get the kiddos involved in the planning process. Use Google Flights, Kayak or a similar search engine to explore the cost of airplane tickets from your city. Check out different times and days to show price comparison, and make sure they understand the added expenses of flying. We've got a vacation budgeting spreadsheet to help you with teaching. 16. Use money apps It used to be that a chore tracking sheet with star or smiley face stickers was enough, but everything's gone digital. If your child prefers seeing rewards on the iPad, consider a chore and allowance tracker like BusyKid. Not only does this app help you keep track of their chores, but you can use it to help them learn about basic money things, like earning, saving and even stocks. 17. Draft up a wish list Instead of an annual letter to Santa, encourage your child to write down all the things they want, and then rank each item. Not only does this teach your kid how to prioritize purchases, it gets them budgeting ahead of time for items they want. 18. Draft a budget This simple spreadsheet can get you — and your child — started. 19. Lead by example When it comes to teaching your kids about money, set an example. Your child is likely to develop habits based on your behavior, so make sure you are practicing good money habits. 20. Show them fads aren't everything Kids are constantly asking for the newest toy or brand of clothing and then move on to wanting something else a couple months later. Learn to tell your child ‘no’ when you think a purchase isn’t essential, saving you money and teaching them not to spend on whim. 21. Avoid impulse buys Avoiding game-time purchases in front of your children teaches them financial planning and budgeting early on. Encourage your child to wait at least a day before buying something they “really want" and, if they decide it's something they really want or need, to figure out the most cost-effective time to get it. For example, there are stores with tax breaks during back-to-school season. 22. Choose generic over brand-name When you go to the supermarket, you can show your child how much you save by purchasing generic instead of brand-name or stocking up on items that are for sale. Show them see there’s a way to shop smart. 23. Use cash ... Young kids might not understand that you’re spending money when you swipe your card or use a cash-transfer app. When you’re with them, see if you can use cash so they can physically see how money is finite. You can teach them about credit later on. 24. ... & show them the envelope method An easy way to save teach them budgeting using cash is the envelope system, where you set a limit for how much you’re going to spend on big budget categories, like dining, entertainment and groceries, each month. Once you set limits, put aside that amount of cash in an envelope for each category. Your child will see where the physical payments go each month. 25. Use commission, not allowances Instead of giving your kid a set amount of money each week, offer up cash for tasks completed, such as setting the table or doing their laundry. This reinforces that money is earned, not given — and helps ensure your child’s bed gets made. 26. Show the value of cooking over eating out As convenient as eating out can be, it adds up. Teach your child cooking can be cost-effective but just as delicious by purchasing cookbooks with some of their favorite recipes, and going with you to the grocery store to stock your kitchen. Take the time to practice cooking together — family bonding time and financial lesson in one. 27. Cook meals at home Next, plan out a week’s worth of brown bag lunches and figure out the cost per day, then compare it to buying lunch every day at school. It doesn’t have to be a chore — choose fun, delicious recipes that your kids (and your wallet) will love. 28. Set up a three-jar system Remember that clear jar we mentioned earlier? Go ahead and grab three of them. Label them "spend," "save" and "donate,” then when you child receives money, let them decide where it goes. 29. Chat with financial experts Your financial adviser is an important resource — to you and your children. Bringing your kids along for the ride next time you pay a visit to a financial adviser allows them to ask questions and even prepare for their own financial future, once they move out from under your roof. 30. Don't fall into the ad trapAds are everywhere — and it’s easy for us to be influenced by them. Teach your child just because something is advertised, doesn’t mean you should get it. 31. Talk about salary ... Because money doesn’t grow on trees — and studies show talking to your kids about money can pay off (literally) for them down the line. 32. ... & credit scores A lot of young people are unfamiliar with credit, and that can get them in financial trouble, thanks to things like interest charges and late fees. By teaching them how to monitor their credit, you’ll put your kids on the right track for the future. Show them what your score is and explain what you’re doing to improve or maintain it. You can even make it a fun event (pizza night, perhaps?). 33. Help them set near-future money goals ... What is something they really want in the near future? Whether it’s saving up for a new toy or having money for a souvenir on your next family vacation, help your child set up a plan for what they need to do to get the money (and how to save it). 34. ... & far-future money goals College or homeownership may seem like lifetimes away to children still in elementary school, but we all know how fast that time goes. Help them choose a portion of their money that will go toward their future needs, whatever that may be. 35. Clip coupons Get your kids involved in this money-saving habit! Have your kids hunt through coupon books for the right ones and then bring them to the store with you to show them how they work. 36. Open a savings account Encourage your kid to make regular deposits and, as the balance grows, teach them about the power of compound interest. This will help your kid become a lifelong saver. 37. Take them with you to the bank Taking your kid to the bank and showing them how to make a deposit, withdraw money, or open their own savings account are great ways to show them how banking and money works. 38. Teach the concept of interest with pennies Another way to teach basic compounding interest can be done in another way by giving your child a penny, then giving them each day giving them interest equalling the amount they already have: day two, they get one penny, day three, they get two, and so on. 39. Get them investing early Buy them a share or two in a familiar company and let them see firsthand the risks and rewards of investing. If you don’t want to put real money down, you can play a stock market game online with imaginary money. 40. Compare the cost of colleges If you have teens, set expectations early about how much you can contribute to their college education, if anything. Make sure cost is part of the discussion during every college visit and have them research financial aid, loans and other money factors. Don’t let them fall in love with a school they can’t actually afford. 41. Look into scholarships If your child is near the end of their high school career, they can apply for a scholarship. Helping your child find and apply to a scholarship will teach them how to make and reach financial goals, and take a little pressure off their college savings fund. If you aren’t sure where to start — Policygenius offers a scholarship to a college student. 42. Build a treehouse Policygenius’ inaugural scholarship winner in 2017, Marissa Heffernan, got a crash course in money management when her grandfather tasked her with keeping the financial books on the project. 43. Pitch a lemonade stand There are plenty of ways for kids to earn money: Babysitting, mowing lawns or opening the traditional lemonade stand. Get them to develop their hustle as soon as they’re able. 44. Get your kid’s school on board Some schools offer the Junior Achievement program, a volunteer organization that teaches kids about entrepreneurship and financial literacy by immersing them in real-life money situations. You kid’s school doesn’t offer a program? Lead the way in starting a program. 45. Have them calculate the tip Good tipping is courtesy when dining out, so get your kids ready to be good restaurant patrons by teaching them the easiest way to calculate a 20% tip (move the decimal over one numeral and multiply by two). 46. Use gift cards Instead of buying your child a toy, give them a gift card to their favorite store. This allows them to go and weigh costs before purchase. 47. Read the business section A great way for your child to learn about finances is to stay up-to-date on business news. Check out the business section of your local (or online) newspaper to educate them on what’s going on in the money world. 48. Chat about that cell phone bill Sooner or later, your kid is going to be booted off your family plan once and for all and they’ll have to pay for their own phone and cellular coverage. Give them a head start and show them what they should expect to see on their monthly cell phone bill, or if they should consider cell phone insurance down the road. 49. Teach them good money manners Having good money etiquette is always a good look. It’s never polite to ask someone how much money they have or tell them how much money you have, and your kid should know that. 50. Teach them that money isn’t everything Though money is important when it comes to buying groceries or paying your mortgage, it isn’t everything. But, it can be used to protect the ones you care about the most with life insurance. Managing money responsibly is a skill you can teach kids at a very young age. Teaching kids about money may prevent them from joining the masses stuck in a dangerous debt cycle or on the verge of financial disaster.
Being a good role model is a part of the process, and there are several things you can do to make sure your kids are hardwired to manage their money effectively through every stage of life. Looking for financial education for kids? Here are five essential money lessons you can teach your kids at any age. How to save money? Make smart spending decisions You can set a good example for kids by showing them how you make an effort to shop around, compare prices, and delay gratification so that you are buying things you actually need. Educating kids about how to make smart spending decisions will help them recognize the difference between buying something after seeing an advertisement for it or hearing about it from a friend, versus seeking out a good deal based on a real need. Teaching children about money often starts with parents. Savings for a goal: One of the essential money lessons kids need to learn at an early age is the importance of saving a portion of their income and having realistic savings goals. Setting short-term and long-term savings goals will help kids develop the skill of forecasting with their finances and may even discourage impulse spending. Teaching kids to be responsible with money can help them make savings goals for the future. Encourage kids to write down their goals and review them together regularly to make it a habit. Check out these tips to get kids started saving. Raising money-smart kids that save for the futureIn addition to saving money for things they want, kids need to learn the value of saving money for their future and recognize the importance of putting money into a ‘no-touch’ account where they can keep earning compound interest on the balance. Teaching kids to be responsible with their cash can go a long way. You can demonstrate this by setting up a starter account for your kids and tracking the balance over the course of a few months so they can see how their account grows. Check out these online bank accounts that make saving fun. Teaching money management by working with a budget Creating a budget may not be high on your to-do list but it’s a money management tool that everyone needs. Teaching kids the importance of budgeting and working with some type of spending plan can help them understand how to manage their money better. Kids earning an allowance can put together a spreadsheet or chart with a running balance and list their ‘expenses’ to get a taste of the budgeting process. You can make one yourself or find free printables designed for kids online. Teach your child the value of money: live within your means One of the best practical money skills you can do to show your kids how to live within their means is to spend with cash — or a debit card — whenever possible. Buying what you can afford and refraining from using credit cards just to get by will help kids understand what it really takes to live within their means. Start teaching kids about money it will help for enhancing their knowledge. Many parents restrict their children's diet when they have diarrhea, like when they have rotavirus or "stomach flu." That usually means no milk or any of their kids' other favorites. However, while it might make some sense to you to not let your kids eat certain foods when they have diarrhea, the BRAT diet is now considered rather old-fashioned advice.
Experts now believe that children should continue their regular diet when they have diarrhea. In fact, the American Academy of Pediatrics states that 'most children should continue to eat a normal diet including formula or milk while they have mild diarrhea.' And the CDC recommends that 'children receiving semisolid or solid foods should continue to receive their usual diet during episodes of diarrhea.' Yogurt with active cultures, which contain acidophilus, may also be helpful when your child has diarrhea. Foods to Avoid When Kids Have Diarrhea Not all kids want to eat their regular diet when they are sick and have diarrhea, though. And there are some circumstances in which giving kids their regular foods might make them feel worse, which is why it can be a good idea to avoid certain foods when your child has diarrhea, including:
If milk or other foods make your child worse, causing vomiting, bloating, abdominal pain, or worsening diarrhea, then you might call your pediatrician to see if you need to temporarily change your child's diet. BRAT Diet Although starting a BRAT diet is popular among parents when their kids have diarrhea, it is important to remember that it is usually not necessary. So what is the BRAT diet? It includes limiting your child to:
Since some of those foods, especially bananas and rice, are 'binders' and are considered to be constipating, they might help diarrhea. But the BRAT diet alone won't help your child get better faster when he has diarrhea. And since this restrictive diet is low in fat, protein, and energy, it might actually make it harder for your child to recover from an illness. Misconceptions About Treating Diarrhea In addition to restricting a child's diet, another common misconception when treating diarrhea is that Pedialyte or other electrolyte solutions will make diarrhea go away. These drinks aren't a cure for rotavirus and other causes of diarrhea. Instead, they just help prevent your child from getting dehydrated. Again, in most cases, when your child has diarrhea from a simple viral infection, you should usually continue him on his typical, unrestricted diet and just give extra Pedialyte when he has large, watery diarrhea. The only time that you may wish to give only an electrolyte solution is when your child has a lot of vomiting. In those circumstances, very small amounts of an electrolyte solution (like a teaspoon or tablespoon) given every five or ten minutes until he is keeping fluids down can help prevent dehydration. You should teach your kids by taking help from Point-system for kids which would help you to develop a healthy and happy child, and can also start teaching them about what is financial literacy for kids and different new things . This will help them to enhance their knowledge. |
AuthorHi! I am Tim Connolly and I am providing help to parents to bring up their children in a healthy environment. I am working in this profession from last 5 years, if you have any query regarding this please contact me. Archives
June 2021
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